Sunday, April 17, 2005

Wal-mart in India?

Wal-Mart gets a feel of India from MNC Partners
For the first time, the $288-billion company called on over 10 MNCs in the country - Coca-Cola, Pepsi, Frito Lays, P&G, Cadbury, Henkel, Nestle and others - to study the consumer behavior in the Indian markets. To know more about the buying habits of the Indian Consumer, the SCM in the markets and the margins.
Main 3 RoI for Retailers are - Conversion Ratio, Footfalls and Ticket Size.
Wal-mart - has always entered thru acquisitions in a country.. Pantaloons?
All 9 countries in which it operates - it has always entered by acquiring the largest retailer present in that region.
Acquiring a stake in Seiyo in Japan, Woolco in Canada, ASDA in UK, Wertkauf in Germany, and of course, the latest one - talks with Migros to enter in Turkey.
Pantaloons in India?
Of course, China and Argentina are exceptions, but that is another story in itself.
All the companies with which Wal-mart met are suppliers in the countries in which it operates. All of them operate in India, and so are potential building blocks for the Wal-mart setup.
Earlier, had discussed with Indian Textile owners, and the segment, post MFA.

2 comments:

avinav said...

hi puru.. just ran into this insightful blog of yours on mktg.. great work !!
1 point- as far as i know wertkauf in 1999 (and even now) was not even in the top 10 retailers in germany when walmart acquired it..
cheers avinav !!

Puru said...

Thanks Avinav for the note. Am not sure if you would be back here to read this or not, but just wanted to thank for sharing this.

Wal-mart picked up retailers that weren't doing so good, but had a huge customer base - If they were potentially very strong, and relatively cheaper to acquire - they would have been the best option at that time.

Just a thought, though.
Regards
Puru